The Apple AAPL Support Bounce Challenge May 10

May 10, 2016: 10:15 AM CST

Apple (AAPL) shares face a critical support bounce challenge – a key opportunity for traders – at the $92.00 level.

Let’s focus on this level and plan a trade on the departure from this immediate level.

We’ll start with the Daily Chart:

Apple (AAPL) rallied on positive divergences “up away from” the $92.50 level in February 2016.

Price rallied all the way back to the falling 200 day SMA (red) above $110.00 per share.

From there, a negative momentum and volume divergent preceded a reversal back to the downside as the downtrend continued.

Now, Apple traders face a similar “Will it Bounce or Will it Break” simple trading plan once again at $92.50.

I’d prefer to see a postive divergence or more sideways action develop at this level before trading bullishly.

Nevertheless, compare February 2016 to May 2016 for a similar trading opportunity and plan.

We can pull the perspective back to the Weekly Chart for a Bullish Bounce AND a Bearish Breakdown Plan:

A large-scale Fibonacci Retracement Grid reveals our key reference level near $95.00 per share.

In truth, the $92.50 level – the rising 200 week SMA – has been more effective as a short-term reversal pivot.

IF price does support-bounce and rally higher, THEN we could see an initial rally through to $104.0 per share or perhaps just above $110.00 (the prior high).

A future breakdown under $91.00 and $90.00 opens the BEARISH downside pathway perhaps to $85.50 or $80.00.

Regardless of your bullishness or bearishness on the company, focus on trading the departure from $92.50.

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Corey Rosenbloom, CMT

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3 Responses to “The Apple AAPL Support Bounce Challenge May 10”

  1. Apple Faces Critical Support Bounce Challenge - Says:

    […] By Corey Rosenbloom […]

  2. Beware the Apple Trapple AAPL | Afraid to Blog Says:

    […] update our charts after last week’s “Apple Support Bounce Challenge” and plan the next […]

  3. Kazim Says:

    Trading with keeping eye on these support levels can be perfect, but at the same time we need to be very careful that we don’t do anything silly or else it could create unnecessary issues. I am always following the trend and this blogs helps a lot while I also keep my safe side thanks to OctaFX broker through their rebate program where I am able to get 50% back on all trading orders and that counts the losing ones too.